I would also then wonder about the remaining junior liens... most are smaller amounts for several hundred dollars to a couple thousand.

To get around this without having to pay off the remaining balance of the mortgage (Due on Sale Clause), our lawyer recommended writing up a side agreement between us and our LLC stating that the LLC has the right to use the property and the first right to buy the property once the mortgage has been paid off. 

It was to allow people to remain in their homes without the taxes being raised so much that their house was now unaffordable. 

I'd do the minor reno and get into some more solid properties so that your tenants can pay the equity instead of leaving all your equity tied up in it.

At most what they said is 'hey if you can show our name tied to a deed' let us know and we can figure something out (meaning it would most likely go to auction at some point).

I still don't have adequate expertise in this area, but got too much interested in this as I could earn better here than my regular job, even though I wasn't putting my entire energy and time.Before the pandemic, I was getting ready to be a full-time real estate person and was up to tie up with a reputed team.

For buy and hold regardless of what market value does, my costs remain the same, and unless I am forced to reduce rent then my revenue remains the same.

We used hard money to finance the deal but we have our own money tied up alsoHow did you add value to the deal?

Do you anticipate having holdings in multiple states, in which case you may want to consider forming a CA LLC so you don't end up with this problem in the future since you are based in CA as a central tie. 

I currently have a bank account for just the business, but now that I've scaled the business I have an LLC, although the account isn't tied to the EIN yet.